MercoPress. South Atlantic News Agency

Paraguay's BCP confirms CPI in 2023 within target range

Paraguay ranked behind Ecuador, Bolivia, and Peru

Paraguay's Central Bank (BCP) Thursday released a report showing that the Consumer Price Index (CPI) for 2023 was 3.7%, making it the fourth lowest in South America in addition to falling within the target range (3.8%). It also meant a decrease from 2022's 8.1%.

Paraguay thus ranked behind Ecuador (1.35%), Bolivia (2.1%), and Peru (3.24%). Chile (3.9%) and Brazil (4.6%) came next, while Venezuela (193%) and Argentina (211.4%) had the highest figures in the region as the economy in Latin America and the Caribbean experienced a slowdown in 2023, reaching a modest 2.2%, half the growth rate recorded in 2022 (3.9%), according to the World Bank. In this scenario, Paraguay grew 4.5% thanks to its remarkable performance due to the so-called Fiscal Responsibility Act coupled with robust interconnected progress among energy, services, and other sectors not linked to agriculture.

For 2024, the World Bank forecasts 2.3% growth in Latin America, an improvement of 0.3% compared to previous estimates. However, the forecast for 2025 is adjusted downward by 0.1%, dropping from 2.5% to 2.4%. Factors such as high inflation, tight financial conditions, weak trade, and adverse weather events impacted growth in 2023, according to the World Bank.

Economist Jorge Garicoche explained that the behavior of world prices experienced a considerable increase, especially in food and fuel, in previous years, directly impacting the economy and local incomes. “Prices globally had a tremendous increase, especially in food and fuel, but last year they had a significant decrease. That is why economists speak of inflation that went down and stabilized,” Garicoche pointed out.